4 ‘secret’ growth stocks you can’t afford to miss!

Today I’m discussing a cluster of FTSE SmallCap (INDEXFTSE: SMX) stars I believe are set to surge.

Services star

Technology, payment and admin services provider Equiniti Group’s (LSE: EQN) share price has exploded in recent months, the company’s ability to secure business from both new and existing clients continuing to excite the market.

Indeed, Equiniti commented in April that it expects organic sales to rise 5% this year alone as contract wins with blue chips like Barclays, Tesco and Lloyds pay off.

The City shares this cheery outlook, and predicted earnings rises of 13% and 10% for 2016 and 2017,…

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Today I’m discussing a cluster of FTSE SmallCap (INDEXFTSE: SMX) stars I believe are set to surge.

Services star

Technology, payment and admin services provider Equiniti Group‘s (LSE: EQN) share price has exploded in recent months, the company’s ability to secure business from both new and existing clients continuing to excite the market.

Indeed, Equiniti commented in April that it expects organic sales to rise 5% this year alone as contract wins with blue chips like Barclays, Tesco and Lloyds pay off.

The City shares this cheery outlook, and predicted earnings rises of 13% and 10% for 2016 and 2017, respectively, produce exceptional P/E ratings of 12 times and 11.3 times. I reckon Equiniti is a steal at these prices.

Shopping giant

Home shopping and education supplies provider Findel(LSE: FDL) has fallen out of favour with stock pickers in recent times, the firm slipping to three-year lows as fears over the retail sector have gathered pace.

But I believe these concerns are overblown — indeed, Findel advised in March that sales at both its Express Gifts and Findel Education arms had improved more recently. And the recent sale of its Kitbag division should allow the firm to double-down on its key areas looking ahead.

The number crunchers expect Findel to enjoy an 11% earnings bump in the period to March 2017, resulting in a bargain-basement P/E ratio of 6.7 times — any reading below 10 times is considered ultra-cheap.

And predictions of a 21% bottom-line rise in 2018 drives the multiple to a mere 5.9 times.

Tech titan

Recent trading news from filtration and environmental technology play Porvair(LSE: PRV) helped propel the stock price to fresh record highs around 342p per share. And I expect this uptrend to continue.

Porvair said that it expects sales to shoot 10% higher at constant currencies during December-May, adding that profits “will be ahead of those reported in 2015.” On top of this, Porvair described its order book as “healthy.”

The tech play has a solid record of generating earnings expansion year after year. And extra advances of 3% and 5% chalked-in for the years to November 2017 and 2018, respectively.

I reckon subsequent P/E ratings of 20.9 times and 19.8 times can be defended given Porvair’s exceptional earnings record and improving sales outlook.

Construction corker

Land, property and construction play Henry Boot(LSE: BHY) also furnished the market with a bubbly trading update in recent weeks.

The firm advised that trading since the start of 2016 has been “encouraging.” And critically Henry Boot noted that “we are seeing improvements in both construction activity and the size of opportunities coming to the market” despite reports of significant cooling in the British construction sector.

The City expects Henry Boot to print an 8% earnings rise in 2016, resulting in a P/E multiple of 10.9 times. And the multiple slips to a terrific 10.5 times for next year thanks to an estimated 7% advance.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK owns shares of Porvair. The Motley Fool UK has recommended Barclays. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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